Transforming growth factor (TGF)-beta activity was found in the neutral extracts of human myelogenous leukemic cells or K562 cells and the conditioned medium from K562 cell culture. BALB/c 3T3 cells grown in soft agar in the presence of TGF-beta 1 produced an activity that stimulated the growth of K562 cells. This activity was non-dialyzable, acid-stable, heat-sensitive and partially inactivated by pronase treatment. These results suggest a mutual growth reliance between the leukemic cells and fibroblasts mediated by paracrine growth factors produced by these cells.